Funding Details: $220 Million Private Placement, Partly Paid in Bitcoin
Hut 8 Corp. has filed with the SEC that its majority-owned subsidiary, American Bitcoin Corp., raised $220 million through a private stock placement exclusively for accredited investors. The deal was signed on June 24 and closed on June 27, with over 11 million shares of Class A common stock sold. Notably, approximately $10 million worth of shares were purchased using Bitcoin at a conversion rate of $104,000 per BTC. After deducting fees and commissions, the company netted about $215 million in proceeds. The offering was conducted under Rule 506 of Regulation D, exempting it from SEC registration, enabling rapid capital access.
Use of Proceeds: Bitcoin Accumulation and Miner Purchases
American Bitcoin stated that the net proceeds will fund its strategic goals of building Bitcoin reserves and expanding mining capacity, including direct purchases of Bitcoin and/or mining rigs. The subsidiary was created on March 31 when Hut 8 transferred substantially all of its Bitcoin mining equipment in exchange for an 80% stake in the new entity. Following this raise, American Bitcoin is poised to significantly increase its Bitcoin holdings and hashrate, following the playbook of Michael Saylor's Strategy (formerly MicroStrategy), which has amassed 597,325 BTC and seen its stock price surge. American Bitcoin aims to replicate that success.
Public Listing Plans and Trump Family Involvement
In May, American Bitcoin announced a reverse merger with Gryphon Digital Mining, targeting a Nasdaq listing under the ticker ABTC as early as Q3 2026. This would give public investors direct exposure to the company's Bitcoin treasury strategy. Eric Trump is involved with American Bitcoin, and the Trump family has made multiple crypto-related moves. Don Trump Jr. emphasized their serious commitment to crypto, stating they are involved in three major deals and believe this is the beginning of the future of finance with massive opportunity. Additionally, Trump Media (parent of Truth Social) is raising $2.5 billion to build its own Bitcoin treasury, further demonstrating the family's deep bet on digital assets.